Title
Hold a public hearing and consider an ordinance amending Killeen Code of Ordinances, Chapter 31 - Zoning by amending Sec. 31-2 - definitions; amending Article IV - District Regulations to add Division 23 - North Killeen Overlay District; and changing the zoning of approximately 1,842.179 acres bounded by North Fort Hood Street on the west, Fort Hood United States Army Post on the north, North and South W.S. Young Drive on the east, and Hallmark Avenue, Trimmier Road, and Terrace Drive on the south, to add an overlay district to be known as the North Killeen Overlay District.
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DATE: October 20, 2026
TO: Laurie Wilson, Interim City Manager
FROM: Wallis Meshier, Exec. Dir. Of Dev. Serv.
SUBJECT: North Killeen Overlay District
BACKGROUND AND FINDINGS:
Agent: City-initiated amendment
Current Zoning: Various residential and commercial zoning districts in North Killeen
Proposed Zoning: Create the North Killeen Overlay District (NKOD)
FLUM Designation: Urban Village, Traditional Neighborhood, Neighborhood Commercial, Regional Commercial, Campus, and Public Space
Growth Sector Designation: ‘Infill & Enhance’ (IE)
Summary of Request:
The North Killeen Revitalization Program was established in September 2015 as a 5-year pilot program with the intent of incentivizing new investment in North Killeen by waiving permitting fees and providing additional opportunities for appropriate infill development. The North Killeen Revitalization Program was readopted in September 2020 and was later amended in January 2023 to include additional fee waivers. The program was amended again in January 2025 to alleviate off-street parking requirements within the district.
On March 24, 2026, City Council approved a request for a future agenda item to discuss increasing affordable housing opportunities by allowing tiny homes, tiny homes on wheels (THOWs) and accessory dwelling units (ADUs) in the North Killeen Revitalization Program area.
On April 7, 2026, City Council approved a Motion of Direction directing staff to prepare an ordinance codifying the North Killeen Revitalization Program (NKRP) and establish an overlay zoning district to allow Tiny Homes, Tiny Homes on Wheels (THOWS), and Accessory Dwelling Units (ADUs) by-right; and limit locally undesirable land uses.
If approved, the proposed ordinance will establish an overlay zoning district, to be known as the North Killeen Overlay District (NKOD).
A zoning overlay implements specific regulations within a defined geographic boundary. An overlay district can allow additional uses that are not otherwise permitted in the underlying base zoning district, as well as prohibit specific uses that are otherwise permitted in the underlying zoning district. Rules for the underlying base zoning districts remain in effect unless stated otherwise in the overlay ordinance.
The primary goal of the proposed North Killeen Overlay District is to encourage infill development in North Killeen by allowing more flexibility for property owners to add new types of housing that were not previously permitted, such as tiny homes, THOWs and ADUs. To encourage new neighborhood commercial uses, the proposed ordinance, if approved, will also alleviate the screening device requirement between commercial and residential uses by allowing composite fencing material in-lieu-of masonry.
The proposed overlay district is also intended to strengthen neighborhood character by prohibiting new incompatible commercial activities and providing limitations on boarded-up buildings. If approved, the proposed overlay district will prohibit new after-hour nightclubs, private gambling places, BYOB (bring your own beverage) establishments, and outside sales of secondhand goods. Pre-existing and otherwise lawful businesses impacted by this ordinance will become nonconforming but will be allowed to continue until such time as the nonconforming use is discontinued in accordance with Killeen Code of Ordinances Sec. 31-52. The proposed ordinance, if approved, will also provide that buildings shall not be boarded up for longer than ninety (90) days, unless otherwise approved by the Building Official.
If approved, the proposed regulations will apply to all properties located in the NKOD, which follows the same boundary as the North Killeen Revitalization Area (NKRA). That boundary is shown on the attached map and is delineated by North Fort Hood Street on the west, Fort Hood United States Army Post on the north, North and South W.S. Young Drive on the east, and Hallmark Avenue, Trimmier Road, and Terrace Drive on the south.
COMPREHENSIVE PLAN ANALYSIS:
The proposed overlay is located within the ‘Infill Enhance’ (IE) area on the Growth Sector Map. This sector includes developed places with full municipal services where additional population, higher development intensities, and integration of uses is desired. This sector is primarily located in downtown and the neighborhoods immediately around it. Growth policies for this area should support infill, redevelopment, and infrastructure projects. These projects should accommodate more residents and small businesses while improving walkability.
North Killeen is a focus for much of the Comprehensive Plan. From the beginning of the document, the components of Land Use & Growth Management call out the importance of prioritizing infill and revitalization of North Killeen. The public engagement process clarified the values, assets, and aspirations that make up Killeen’s identity. A key asset that people want to protect and improve is “Downtown and historic buildings in North Killeen”. The financial analysis identified the opportunity for increasing the housing supply, which will have the dual benefit of providing more affordable housing while increasing the value per acre, and thus income to the city, without adding new costs for expanded infrastructure. The gridded pattern of small residential lots typically performs well in other cities, but reduced investment in Killeen has resulted in lower-than-expected property values. Catalyzing development in North Killeen, with its access to established infrastructure, is a simple way for property owners to generate equity and a sense of community for everyone. Efforts should be made to demonstrate how this area can be improved and showcasing its value to entrepreneurs and local businesses. The fiscal takeaway is summarized on page 52:
“The fastest way to close the resource gap in Killeen is to focus on infill development, revitalization, and to make redevelopment in North Killeen a top priority today.”
This action supports the following Comprehensive Plan recommendations:
§ G2 - Take control of the narrative about Killeen.
§ DT4 - Embrace the small/incremental approach to add residential units and small scale commercial spaces.
6. “Update zoning to allow for a wider range of housing and commercial types and sizes in Downtown and adjacent neighborhoods.”
§ LU2 - Improve the fiscal productivity of development.
§ LU3 - Encourage incremental evolution of neighborhoods.
1. “Update zoning and development regulations to allow more flexibility for properties to evolve while still meeting character and design requirements of the governing place type, growth sector, and neighborhood context.”
§ LU4 - Prioritize infill and revitalization in North Killeen.
§ NH3 - Diversify housing mix (types and price points).
4. “Update development standards to allow addition of accessory dwelling units (ADUs) in suburban subdivisions by right.”
§ NH7 - Focus on delivering housing for those in need.
Development Zone Analysis:
These properties are located within City of Killeen Development Zone #1, which is generally situated north of Veterans Memorial Boulevard and west of WS Young Drive. This development zone is comprised of approximately 66.38% residential uses and 33.17% commercial uses. Overall, the current land use mix in the surrounding area includes approximately 1.36 acres (0.13%) of Special Districts, 667.36 acres (66.25%) of Residential, 58.91 acres (5.85%) of Industrial, 275.23 acres (27.32%) of Commercial, and 0.04 acres (0.45%) of Agricultural uses, for a total of approximately 1,007.39 acres. In addition, vacant property accounts for approximately 118 acres, or 11.71% of the area.
PUBLIC NOTIFICATION:
Mailed notices were sent to property owners within and surrounding the proposed overlay district on August 26th. Staff mailed a total of 3,662 written notices to the owners of 4,264 properties, including:
• 2,718 to residential properties within the proposed overlay;
• 649 to commercial properties within the proposed overlay; and
• 295 to properties within the 400-foot buffer.
A notice of the Public Hearing was published in the Killeen Daily Herald on October 4th.
In addition to the mailed notices, staff also created a webpage to help citizens better understand the proposed North Killeen Overlay District. The webpage has multiple resources such as a short video that breaks down the proposed overlay, the proposed ordinance and map, samples of the mailed notices, and the frequently asked questions (FAQs).
To date, staff has received no written responses regarding the proposed ordinance.
Staff Findings:
Staff finds that the proposed North Killeen Revitalization Overlay District (NKOD) is consistent with the recommendations outlined in the Killeen 2040 Comprehensive Plan.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This zoning request conforms to the City’s policy and procedures, as detailed in Chapter 31 of the Killeen Code of Ordinances.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
This is not applicable.
Is this a one-time or recurring revenue/expenditure?
This is not applicable.
Is this revenue/expenditure budgeted?
This is not applicable.
If not, where will the money come from?
This is not applicable.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
This is not applicable.
RECOMMENDATION:
At their regular meeting on September 14, 2026, the Planning and Zoning Commission recommended approval of the proposed overlay district by a vote of 6 to 0, with the following conditions:
1. Allowing approval by the Executive Director for reduced setbacks for tiny homes;
2. That Tiny Homes on Wheels (THOWs) must be tied down or anchored;
3. Changing the minimum lot size for ADUs from 7,500 sq. ft. to 6,000 sq. ft
All changes recommended by the Commission have been incorporated into the proposed ordinance.
Staff recommends that City Council adopt the proposed North Killeen Zoning Overlay District (NKOD) ordinance as presented.
DEPARTMENTAL CLEARANCES:
Planning, Engineering, and Legal staff have reviewed this item.
ATTACHED SUPPORTING DOCUMENTS:
Minutes
Ordinance
Map of NKOD boundary and notification area
Public Notices
NKOD FAQ’s
Presentation